Economy to grow at slower pace: climate indicator

By Kuo Chia-erh / Staff reporter

The government’s business climate monitor for January showed “yellow-blue” for a second consecutive month, indicating that the economy is expected to grow at a steady, but slower pace, the National Development Council said yesterday.

The overall composite score of business monitoring indicators decreased by two points from the previous month to 20, the council’s monthly report said.

Council research director Wu Ming-huei (吳明蕙) attributed the overall decrease to the decline in exports and industrial production.

Among the nine sub-indexes, only the readings on exports and industrial production showed “blue,” decreasing by two points and one point from the previous month respectively, council data showed.

The council uses a five-color spectrum to describe the nation’s economic health, with “blue” representing a recession, “green” meaning steady growth and “red” indicating overheating, while “yellow-blue” reflects a transition.

The New Taiwan dollar in January appreciated 7.8 percent against the US dollar, weighing on the nation’s exports, Wu said.

Some local manufacturers conducted routine maintenance on their plants during the month, resulting in lower industrial production, the council said.

However, it said it is relatively positive about the nation’s economic outlook, given an upward trend in the index of leading indicators.

The leading indicator index, used to gauge the economic outlook in the coming six months, rose to 101.62 from 101.54 in December last year, the report said.

Four sub-indices, such as export orders and semiconductor equipment imports, showed positive trends, while the indicator for monetary aggregates, M1B, declined, the report said.

Meanwhile, the index of coincident indicators, which gauges monthly economic conditions, was down to 101.85 from 101.99 the previous month, it said.

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